Amount that is required to deposit annually


Gina Dare, who wants to be a millionaire, plans to retire at the end of 40 years. Gina's plan is to invest her money by depositing into an IRA at the end of every year. What is the amount that she needs to deposit annually in order to accumulate $1,000,000? Assume that the account will earn an annual rate of 11.5%. Round off to the nearest $1.

a. $1,497

b. $5,281

c. $75

d. $3,622

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Finance Basics: Amount that is required to deposit annually
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